Granholm asks Legislature to act on retirement incentives

Governor Granholm is asking the Legislature to act within two weeks on incentives to encourage 47,000 veteran teachers and other state workers to retire. She says that would give school districts time to make a retirement offer and hire replacements for the coming school year.

AUDIO:The governor says the retirement plan would save the state money during a budget crisis, and create thousands of opportunities for younger workers and recent college graduates. But, thus far, the Legislature's been slow to act on her plans.

The governor says she also hopes the Legislature will adopt her plan to avert new cuts to schools by applying the states sales tax to services, while slightly lowering the rate. But the governor says the Legislature could also put the question to voters on the August ballot.

"Citizens would not like to see us cut public education at a time when schools have just adopted massive cuts from last year," she says.

The governor says she will veto a K-12 budget that enacts a new round of cuts in per-pupil funding.